October 16th, 2017

BlockChain Marketing

Blockchain technology, the underlying technology that makes cryptocurrencies possible is poised to change the way startups raise money. Blockchain provides a ledger for recording and verifying transactions and other information among multiple parties without expensive intermediaries like brokers or exchanges.

It’s being used by a growing number of companies in the financial industry and other businesses, and dozens of startups are sprouting to develop new uses for it.

Let’s explore Blockchain marketing trend together!

Entrepreneurs seeking money and capital to build their startups have been long dependent on venture capitalists in Silicon Valley. Now the many startups developing decentralized applications for blockchain technology have another option:

They can go online and easily raise millions by creating digital tokens, for use as currency on blockchain platforms, and selling them in what is known as an initial coin offering, or ICO.

Working in Cohesion with Venture Capitalists

The way ICOs work is fairly straightforward: Companies create and issue digital tokens that can be used to pay for goods and services on their platform or can be stashed away as an investment.

They put out white papers describing the platform, software or product they’re trying to build, and then people buy those tokens using widely-accepted cryptocurrencies like bitcoin and ether.

This suggests that rather than replacing VCs, ICOs could actually be benefiting greatly from being affiliated with them. There are few validation agents currently in place to lend credibility to ICOs.

VCs could be filling that gap, which is why aggressive ICO and Blockchain marketing approach is critical which consists- dominant strategies for raising awareness and user adoption/

Gaining Authoritative Edge with ICO Fundraising Practices

Perhaps other entities much like independent rating agencies will emerge for ICOs, assuming the market sustains itself and continues to grow. For now, the crypto-fundraising concept is so new that having a respected entity involved goes a long way to reassuring investors.

It’s a way for these startups to raise lots of money without giving up decision-making power to venture capitalists or surrendering any equity to them. This is very important as the philosophy behind the decentralized applications is that not one entity or company owns it.

ICO also makes this possible by being able to make company shares very liquid so there is always a market without any boundaries on who can buy and sell.

Liquidity is a big advantage in ICOs. Venture investments can be tied up for years before seeing a return, while markets in bitcoin, ether and other cryptocurrencies allow for immediate trades of any currency purchased in an ICO.

We can conclude that blockchain technology which made ICOs possible will definitely change how these startups will raise money. Startup seeing this trend and the demand for decentralized applications will have huge benefit over the long term as one of the first movers, however all this first needs a dynamic blockchain marketing plan.

It is fairly easy to raise money as long as you have a good and reputable team and idea. After that market will decide the future for you. As it should be always.

Blockchain Marketing With New Digital Noise

At New Digital Noise, we are exploring ICO and Blockchain Marketing together with a number of ICO leaders in the market by offering: